Bank launches loan scheme for civil servants

MASERU – Standard Lesotho Bank on Tuesday launched personal loan scheme for civil servants.
The bank and the government signed the Memorandum of Understanding during the launch.
The bank’s Head of Personal and Business Banking, Selloane Tsike, outlined what the government’s unsecured personal loan scheme entails and the benefits that all government employees stand to gain out of the scheme.

Tsike said they are excited to announce that civil servants will be given a preferential interest rate on their loans in addition to the scheme they already have on VAF and Home Loans.

“Also, the bank has made significant changes on the insurance that have to cover these loans,” Tsike said.
Tsike further said they have reduced the premiums for the Loan Protection cover, that is, on this insurance they also give cash back on all premiums paid after a minimum of 48 months where consistent instalment payments have been made without default or have not put a claim.

“This cashback facility is new to the banking industry in Lesotho,” she said, adding that “it demonstrates our commitment to remain the leading and innovative bank for Lesotho”.

The new Unsecured Personal Loan scheme covers permanent disability and death. On the death benefit, the insurance will settle the outstanding balance to the bank and beneficiaries will receive an initial loan amount less the outstanding balance.

Over and above this death benefit, the offering also has a funeral benefit that pays out a percentage of outstanding loan balance with a minimum of M2 000 and a maximum of M50 000.

Standard Lesotho Bank CEO Mpho Vumbukani said the bank will continue to work in collaboration with the government.
In the past the bank engaged with the Ministry of Public Service to identify what trades-offs they can make for the advantage of public servants.
Vumbukani said this is a commendable initiative given that they will be able to provide government employees with a full bouquet of all their products and services at very low and affordable rates.

“It goes without saying that we have made it more affordable for government employees to access loans from our bank,” Vumbukani said.
“Not only that, we have also made it possible for them to access increased amounts so that they can fulfil their dreams and aspirations with ease,” he said.

The Minister of Public Service Joang Molapo said their major mandate is to see to it that they maintain the well-being of the public servants hence they requested Standard Lesotho Bank to help. “It is real that public servants engage in debt to pay off school fees and other unforeseen emergencies,” Molapo said.

“By so doing Standard Lesotho bank is meeting public servants halfway with unsecured personal loans at a reasonable rate of interest that is not extremely high, but affordable,” he said.

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